Eastar Jet Requests 2-Month Extension for Submission Deadline of Rehabilitation Plan

[Asia Economy Reporter Dongwoo Lee] Eastar Jet, which is undergoing corporate rehabilitation proceedings, has requested the court to extend the deadline for submitting its rehabilitation plan.

According to the aviation industry on the 15th, Kim Yusang, the administrator of Eastar Jet, applied to the court the day before to postpone the deadline for submitting the rehabilitation plan from July 20 to September 20, a two-month extension.

Administrator Kim said, "We requested an extension of the submission deadline due to insufficient physical time for confirming claims and building the server." The industry expects the court to approve the extension request soon, considering Eastar Jet's situation.

The rehabilitation plan includes how to utilize the acquisition funds and the scale of debt repayment, for which confirming claims is essential. Previously, the court accepted claims, but there is a possibility that Eastar Jet's claims may not be recognized.

Eastar Jet plans to restore its IT system, review the specific details of the claims, and then prepare the rehabilitation plan.

Earlier, on the 24th of last month, Eastar Jet signed an M&A investment contract worth approximately 110 billion KRW with Seongjeong Co., Ltd., a golf course management and real estate rental company.

Before submitting the rehabilitation plan, claims will be confirmed, and then a creditors' and stakeholders' meeting will be held to negotiate the repayment ratio of the claims. Once the repayment ratio is decided at the stakeholders' meeting, Seongjeong will pay the acquisition funds through a third-party allotment paid-in capital increase.

Eastar Jet has set a goal to resume operations starting with domestic flights in November this year after reacquiring the Air Operator Certificate (AOC) from the Ministry of Land, Infrastructure and Transport.

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